Has the stock rally restored America's wealth?

U.S. households have recovered the $16 trillion they lost when the economy tanked

The Miami International Boat Show: Americans begin to loosen their belts.
(Image credit: Joe Raedle/Getty Images)

Thanks to surging stock prices and improving home prices, Americans have nearly recovered the $16 trillion in wealth that went "poof" in the Great Recession. The Federal Reserve reported Thursday that household wealth totaled $66.1 trillion at the end of 2012, up from a nadir of $51.9 trillion in 2009. Households now have 98 percent of what they had at the peak before the financial crisis — so is it time to celebrate the end of hard times?

It really does look like "American consumers' belt-tightening is finally coming to an end," says Neil Shah at The Wall Street Journal. For four years, Americans have "repaired their balance sheets from the damage of the housing crash and recession." They're looking at their portfolios and realizing the worst is behind them. They're "becoming more comfortable borrowing" — and, most importantly for the economy, spending.

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Harold Maass, The Week US

Harold Maass is a contributing editor at The Week. He has been writing for The Week since the 2001 debut of the U.S. print edition and served as editor of TheWeek.com when it launched in 2008. Harold started his career as a newspaper reporter in South Florida and Haiti. He has previously worked for a variety of news outlets, including The Miami Herald, ABC News and Fox News, and for several years wrote a daily roundup of financial news for The Week and Yahoo Finance.